Net Revenue Retention (NRR)
Revenue retained plus expansion from existing customers
FORMULA
NRR = (Beginning MRR - Churned MRR + Expansion MRR) / Beginning MRR × 100
What is Net Revenue Retention?
Net Revenue Retention (NRR) measures recurring revenue from a customer cohort accounting for churn, downgrades, and upsells. NRR > 100% indicates expansion exceeds churn. Critical SaaS metric for sustainable growth. A key indicator of product-market fit.
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Sample Data
| month | beginMRR | churned | expansion | nrr |
|---|---|---|---|---|
| Jan | 100,000 | 5,000 | 8,000 | 103 |
| Feb | 103,000 | 4,636 | 8,600 | 104 |
| Mar | 106,636 | 4,500 | 9,600 | 105 |
| Apr | 111,336 | 4,450 | 11,100 | 106 |
Required Data Columns
Beginning MRRChurned MRRExpansion MRR